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Coca-Cola Bottling (COKE) Q1 Earnings: What's in Store?

Coca-Cola Bottling Co. Consolidated COKE is slated to release its financial results for the first quarter of 2016 on May 10, 2016. The company is the largest independent bottler of products of The Coca-Cola Company KO in the U.S.

Coca-Cola Bottling had recorded year-over-year growth in adjusted earnings and revenues in 2015. Organic growth in the legacy territories as well as territory expansion through the acquisition of several new distribution territories from Coca-Cola led to the solid performance. The company plans to further expand its distribution territory and acquire additional production centers from Coca-Cola as part of the latter’s global re-franchising initiatives in 2016.

Coca-Cola is refranchising the majority of its company-owned North American bottling territories to create a more efficient system. It plans to refranchise all its company-owned North American bottling territories by the end of 2017.

Coca-Cola also remains focused on refranchising in international markets like Europe and Africa which include the planned creation of Coca-Cola European Partners in Western Europe – merger of three European bottlers including Coca-Cola Enterprises, Inc. CCE – and Coca-Cola Beverages Africa in Southern and Eastern Africa. In China, it has agreed to refranchise its company-owned bottling operations to its existing partners, COFCO and Swire.

Expansion of franchise territories is expected to boost Coca-Cola Bottling’s sales and profits in the to-be-reported quarter as well as going ahead.

The company’s top line has also been benefiting from solid performance of its energy and still beverage brands, a trend which should continue in the upcoming quarter.

A stock worth considering in the beverage industry is Primo Water Corp. PRMW which sports a Zacks Rank #1 (Strong Buy). 

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COCA-COLA ENTRP (CCE): Free Stock Analysis Report
 
COCA COLA CO (KO): Free Stock Analysis Report
 
PRIMO WATER CP (PRMW): Free Stock Analysis Report
 
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